11, November 2016

EUR/USD (a 4-hour chart)

General overview

The uncertainty regarding Trump's economic policy eased on Thursday after fresh talks that the new administration will promote higher economic growth and inflation.

Current situation

The EUR/USD remained under pressure on Thursday, holding onto recent lows. The euro retained a neutral, short-term undertone. After a sharp drop on Wednesday the currency pair found a support around 1.0900. Prices bounced from the level and reversed minor part of their losses, heading to 1.0950 in the Asian session. Buyers failed to reclaim the level which limited their recovery. The euro spent the first part of the day around 1.0950. The EUR/USD pair declined and broke the level 1.0900 ahead of NY session. The moving averages are heading lower in the 4 hours chart. The 50-EMA is crossing the 100 EMA downwards in the same chart. The resistance is seen at 1.0900, the support could be found at 1.0850.

MACD remained in the negative area. The RSI indicator was holding near oversold levels, favoring a move lower.

Trading recommendations

If a bearish tone prevails EUR/USD will extend its losses towards 1.0800.